Latin Manharlal Chat
BSE Prices delayed by 5 minutes...
     Prices as on Jan 21, 2022     
  ABB India 2352.55 [ -1.58% ]
  ACC 2213.95 [ -1.74% ]
  Axis Bank Ltd. 712.6 [ -2.22% ]
  Bank of Baroda 92.6 [ -4.19% ]
  Bharti Airtel 695.05 [ -2.83% ]
  Bharat Heavy Ele 59.6 [ -3.40% ]
  Bharat Petroleum 381.7 [ -2.97% ]
  Cipla 866.9 [ -1.79% ]
  Coal India 158.6 [ -3.88% ]
  Colgate Palm. 1443.4 [ 0.63% ]
  Dabur India 551.65 [ -1.54% ]
  DLF Ltd. 394.6 [ -3.24% ]
  Dr. Reddy's Labs 4498.5 [ -2.06% ]
  GAIL (India) 143.4 [ -2.71% ]
  Grasim Inds. 1790.4 [ -2.16% ]
  HDFC 2592.05 [ 0.90% ]
  HDFC Bank 1520.7 [ 0.73% ]
  Hero MotoCorp 2750 [ 1.45% ]
  Hindalco Indus. 506.1 [ 0.58% ]
  ICICI Bank 804.6 [ -0.66% ]
  IDFC L 62 [ -2.82% ]
  Indian Hotels Co 206.1 [ -1.60% ]
  IndusInd Bank 853.95 [ -2.77% ]
  Infosys 1786.05 [ -2.09% ]
  ITC Ltd. 217.05 [ -0.78% ]
  Jindal St & Pwr 405.5 [ -2.99% ]
  L&T 1954.55 [ -2.38% ]
  Lupin Ltd. 903.45 [ -3.81% ]
  Mahi. & Mahi 874.45 [ -0.70% ]
  MTNL 30.25 [ -3.66% ]
  Nestle India 18958.55 [ 1.07% ]
  NIIT Ltd. 460.95 [ -6.66% ]
  NMDC Ltd. 139.75 [ -2.41% ]
  NTPC 134.1 [ -0.59% ]
  ONGC 163.6 [ -1.95% ]
  Punj. NationlBak 38.75 [ -3.00% ]
  Reliance Inds. 2478.1 [ -0.03% ]
  SBI 502.8 [ -1.71% ]
  Vedanta 323.35 [ -1.12% ]
  Shipping Corpn. 124.55 [ -2.66% ]
  Sun Pharma. 809.05 [ -1.29% ]
  Tata Chemicals 965.25 [ -3.33% ]
  Tata Motors Ltd. 502 [ -2.66% ]
  Tata Steel 1169.05 [ -3.18% ]
  Tata Power Co. 242.05 [ -2.65% ]
  Tech Mahindra 1594.15 [ -4.44% ]
  United Spirits 899 [ -1.28% ]
  Wipro 605.2 [ -1.65% ]

Company Information

Home » Market » Company Information

Greenlam Industries Ltd.

Jan 21
1828.85 -44.40 ( -2.37 %)
 
VOLUME : 335
Prev. Close 1873.25
Open Price 1850.05
TODAY'S LOW / HIGH
1823.85
 
 
 
1868.05
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
790.00
 
 
 
2024.90
Jan 21
1835.55 -38.45 ( -2.05 %)
 
VOLUME : 4334
Prev. Close 1874.00
Open Price 1868.00
TODAY'S LOW / HIGH
1820.65
 
 
 
1868.00
Bid PRICE (QTY.) 0.00 (0)
Offer PRICE (Qty.) 0.00 (0)
52 WK LOW / HIGH
790.00
 
 
 
1997.40
Company Information Menu

Search Company

Market Cap. ( ₹ ) 4430.35 Cr. P/BV 7.73 Book Value ( ₹ ) 237.60
52 Week High/Low ( ₹ ) 1997/790 FV/ML 5/1 P/E(X) 60.06
Bookclosure 12/08/2021 TTM EPS ( ₹ ) 41.89 Div Yield (%) 0.27
NOTES TO ACCOUNTS
You can view the entire text of Notes to accounts of the company for the latest year
Year End :2018-03 

NOTES:

a) Business Segments :

A description of the types of products and services provided by each reportable segment is as follows: Laminate & Allied Products: The Segment is engaged in the business of manufacturing of Laminates, compact laminates and other allied products through its wholesale and retail network.

Veneer & Allied Products: The Segment is engaged in the business of manufacturing of Decorative veneers, Engineered Wood Flooring, Engineered Door Sets & Door Leaf and other allied products through its wholesale and retail network.

b) Segment Assets and Liabilities:

All Segment Assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist principally of fixed assets, inventories, sundry debtors, advances and operating cash and bank balances. Segment assets and liabilities do not include share capital, reserves and surplus, borrowings, proposed dividend and income tax (both current and deferred).

c) Segment Revenue and Expenses :

Segment revenue and expenses are directly attributable to the segment. It does not include dividend income, profit on sale of investments, interest income, interest expense, other expenses which cannot be allocated on a reasonable basis and provision for income tax (both current and deferred).

1. RELATED PARTY DISCLOSURES

2. List of related parties and relationship:

a) Related parties where control exists Subsidiary Companies

i) Greenlam Asia Pacific Pte. Ltd.

ii) Greenlam America, Inc.

iii) Greenlam Europe (UK) Ltd.

iv) Greenlam Asia Pacific (Thailand) Co. Ltd.

v) Greenlam Holding Co. Ltd.

vi) Pt. Greenlam Asia Pacific

b) Related parties with whom transactions have taken place during the year Key Management Personnel

i) Mr. Saurabh Mittal, Managing Director & CEO

ii) Ms. Parul Mittal, Whole-Time Director

iii) Mr. Vijay Kumar Chopra, Independent Director

iv) Ms. Urvashi Saxena, Independent Director

v) Ms. Sonali Bhagwati Dalal, Independent Director

vi) Mr. Ashok Kumar Sharma, Chief Financial Officer

vii) Mr. Prakash Kumar Biswal, Company Secretary

Enterprises Owned/Influenced by Key Management Personnel or their relatives

i) Himalaya Granites Ltd.

ii) Greenply Industries Ltd.

Relatives of Key Management Personnel

i) Ms. Parul Mittal (Wife of Mr. Saurabh Mittal)

ii) Seema Realcon Pvt Ltd ( Brother of Mrs Parul Mittal is a Director in Seema Realcon Pvt Ltd.)

3 Investments by the loanee in the shares of the parent Company and its subsidiary companies, when the Company has made a loan or advance in the nature of loan H Nil (Previous year H Nil)

# Including sitting fees, commission & service tax in previous year figures.

* Amount due from Seema Realcon Pvt Ltd is exclusive of H376.49 lacs (Previous Year H243.36 lacs), received through Channel Finance Facility from a Bank.

Note: All related party contracts / arrangements have been entered on arms' length basis

Related Party Relationship is as identified by the Company and relied upon by the Auditors.

38. FIRST- TIME ADOPTION OF IND AS:

These are company's first financial statements prepared in accordance with Ind AS.

The accounting policies set out herein have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the company's date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 (as amended) and other relevant provisions of the Act (previous GAAP).

Following notes explains the effect of transition from previous GAAP to Ind AS on the company's financial position, financial performance and cash flows.

4.arrying value of Property, Plant and Equipment:

Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. The company has elected to apply to measure all of its property, plant and equipment, and intangible assets at their previous GAAP carrying value.

5. Estimates:

An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

(i) Derivative financial instruments carried at fair value;

(ii) Impairment of trade receivables based on expected credit loss model.

6. Fair Valuation of Investments:

The Company has availed the option available under Ind AS to carry the equity investments in subsidiaries at cost less impairment. Accordingly , equity investment in subsidiaries have been carried at cost, resulting in no change.

7. Leasehold Land:

Under Ind AS, classification of lease into operating or finance is based on various principles. A lease is classified as finance lease if it transfers substantially all the risks and rewards incidental to ownership. Leasehold lands held by the company have present value of minimum lease payments lesser than the fair value on date of inception of lease and as such the same is reclassified as operating lease and have been shown as Prepaid Lease rentals under current assets. Cost of leasehold land comprised of upfront amount paid on inception of lease. As such leasehold land of RS,1529.55 lacs under fixed assets on transition date has been reclassified to Prepaid Lease rentals of RS,1529.55 lacs.

8. Borrowings:

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit and loss over the tenure of the borrowings as part of the interest expense by applying the effective interest rate method. Under previous GAAP, these transaction costs were charged to profit and loss as and when incurred, or were capitalised to plant and machinery if the same pertains to new project or expansion of existing facility.

Accordingly on transition date, borrowings are reduced by RS,30.59 lacs with corresponding credit to retained earnings. Subsequently, during year ended 31 March 2017 interest cost and borrowings has increased by RS,14.69 lacs on account of application of effective interest rate method.

9. Proposed Dividend:

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

Accordingly, the liability for proposed dividend of RS,241.36 lacs and dividend distribution tax of RS,49.14 lacs on transition date has been derecognised in the retained earnings.

Liability for proposed dividend of RS,362.05 lacs and dividend distribution tax of RS,73.70 lacs which was dereognised 31st March 2017, has been recognised in the retained earnings during the year ended 31 March 2018, as declared and paid.

10.Excise Duty:

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by RS,4053.59 lacs. There is no impact on total equity and profit.

11. Expected Credit Loss Model for Trade Receivables:

Ind AS 109 requires adjustment for expected credit loss while making provision for doubtful debts. No such adjustment was required under the previous GAAP. Accordingly, trade receivables and retained earnings decreased by RS,263.32 lacs on transition date and by an additional amount of RS,213.29 lacs during year ended 31 March 201/. Provision for expected credit losses stood at RS,740.93 lacs as on 31 March 2017.

12.Channel Finance Assurance Facility with recourse for Trade Receivables:

As per Ind AS, trade receivables is derecognised only when the company has transferred the rights to receive cash flows, or when it has transferred substantially all the risks and rewards of the asset, or when it has transferred the control of the asset. As such, receivables should not be de-recognised to the extent of recourse in case of Channel Finance Assurance Facility. Accordingly, trade receivables to the extent of recourse amounting to RS, 1793.27 lacs was not de-recognised from trade receivables with corresponding recognition of short term borrowings as on 31 March 2017.

13. Expected Cash Discounts:

As per Ind AS, revenue shall be measured at the fair value of the consideration received or receivable. Fair Value is to be adjusted for trade discounts and volume rebates allowed by the entity. The discount and the expected cash flows should be estimated at the time of sale and the expected discount should be recognised as a reduction of revenue. As such, provision for Expected Cars, Discounts of RS,74.69 lacs has been recognised on transition date with corresponding charge to retained earnings. During the year ended 31 March 2017, provision has been decreased by RS,11.13 lacs by netting off with Gross revenue. As such closing provision for expected cash discounts as on 31 March 2017 stood at RS,63.56 lacs.

14.Mark to Market (MTM) Valuation of Derivative Contracts:

Ind AS 109 requires all derivatives to be measured at fair value and recognize any changes in fair value on the reporting date in profit and loss account unless they are designated in a qualifying hedge relationship. Under previous GAAP, derivatives were not measured at fair value. Mark to Market (MTM) gain/(loss) shall be recognised in Profit and Loss account with a corresponding derivative asset/liability at each reporting date. The company has hedged its liability in foreign currency by entering into forward contracts and interest rate on its foreign currency long term borrowings by entering into Interest rate swap (IRS). Under Ind AS, MTM has been recognised on both of these derivative contracts. As such, MTM gain of RS,5.06 lacs has been recognised on transition date, with corresponding credit to retained earnings. During the year ended 31 March 2017, MTM loss of RS,25.17 lacs has been recognised in profit and loss account, with corresponding credit to derivative liability.

15. Actuarial gain/(loss) on Defined Benefit plans for Employee Benefits:

Under Ind AS, the change in defined benefit liability is split into changes arising out of service and interest cost and changes arising out of remeasurements. Changes due to service and interest cost are to be recognised in Profit and Loss account and the changes arising out of re-measurements are to be recognised directly in Other Comprehensive Income (OCI). As such, actuarial loss on valuation of Gratuity and Leave salary of RS,175.82 lacs as on 31.03.2017 on date has been recognised in OCI instead of Employee benefit expenses.

38.13 Expenses pertaining to Scheme of Arrangement:

Under previous GAAP, expenses relating to the scheme of arrangement were being written off in five equal annual instalments. Ind AS requires that costs incurred to effect a scheme of arrangement are to be recognised as acquisition-related costs and be expensed in the period in which the costs are incurred. Accordingly, unamortised expenses towards scheme of arrangement, Preliminary expenses and Issuance of share capital expenses as on the transition date of RS,75.06 lacs have been charged to retained earnings. Further out of such expenses incurred during year ended 31 March 2017, a sum of RS,15.23 lacs (net of amount already written off and reversal of adjustment as on transition date) has been charged to profit and loss account.

16. Sales Incentives to Dealers:

Under Ind AS, Incentives offered to Customers in any form shall be netted off from revenue and shall not be shown as Sales promotion expenses. However, incentives offered to persons other than customers shall continue to be shown as sales promotion expenses. As such, incentives offered to customers amounting to RS,147.24 lacs during the year ended 31 March 2017 has been netted off from revenue and reduced from sales promotion expenses. Under previous GAAP, all such incentives were shown as Sales promotion expenses.

17Deferred Tax:

As per Ind AS, Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date. On transition date, certain adjustments were made by charge/credit to profit and loss account. The tax effect of such adjustments resulting into deferred tax asset of RS,162.78 lacs has been recognised by credit to retained earnings. During the year ended 31 March 2017, deferred tax expense has been decreased by RS,103.09 lacs - out of which a sum of RS,60.85 lacs has been credited to other comprehensive income and balance RS,42.24 lacs to profit and loss account.

18.pitalisation of Foreign Exchange Differences:

Under previous GAAP, pursuant to Para 46A of AS 11, foreign exchange differences on foreign currency long term borrowings were capitalised along with the cost of Property, Plant and Equipment. Under Ind AS, capitalisation of foreign exchange differences is not permitted and same shall be charged to profit and loss account. However, Ind AS 101 permits grand fathering of capitalization of foreign exchange differences for long term borrowings taken till 31 March 2016. As such, the company has availed the option available under Ind AS 101.

19 Fair Valuation of Loans and Advances:

Under Ind AS, fair valuation is required for in case of loans and advances such as advance to employees, Capital advances and security deposits. In case of advance to employees, all the advances are repayable within a period of 12 months and as such no fair valuation is required.

In case of capital advances, fair valuation is not required as the advances are non-refundable and shall only be adjusted against supply of fixed assets. Security deposits are paid for rental property, electricity and maintenance. Deposits for electricity supply earn a reasonable interest . and as such no fair valuation is required. Deposits for offices and warehouses taken on rent are usually short term lease contracts expiring within a year, and as such no fair valuation is required and security deposit expiring after a period of 12 month is considered as long term and valued at amortised cost.

20FINANCIAL RISK MANAGEMENT

The Company's financial risk management is an integral part of planning and executing its business strategies. The Company's financial risk management policy is planned, approved and reviewed by the Board of Directors. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.

21.terest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of a loans and borrowings will fluctuate because of change of market interest rate

22.MARKET RISK

Market Risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables, and loans and borrowings.

The company manages market risk through the corporate finance department, which evaluates and exercises independent control over the entire process of market risk management. The corporate finance department recommends risk management objectives and policies, which are approved by Board of Directors. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

23 INTEREST RATE RISK

Interest Rate Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to manage the interest rate risk, corporate finance department performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio. The Company has availed foreign currency borrowings with floating interest rates. With a view to minimise the fluctuation in floating interest rate, the Company has entered into Interest Rate swaps to convert the floating rate loans into fixed rate loans.

24OREIGN CURRENCY RISK

The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies. Foreign currency exchange rate exposure is partly balanced by purchasing of goods, commodities and services in the respective currencies. The Company evaluates exchange rate exposure arising from foreign currency transactions and the Company follows established risk management policies, including the use of derivatives like foreign currency forward contracts to hedge exposure to foreign currency risk.

25REDIT RISK

Credit Risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an on-going basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. Trade Receivables are impaired using the Life time Expected Credit Losses (ECL) Model. The company uses a provision matrix to determine the impairment loss allowance based on its historically observed default rates over expected life of trade receivables and is adjusted for forward looking estimates.

Financial Assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the Company. The company categorises a loan or receivable for write off when a debtor fails to make contractual payments in normal course of business. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in statement of profit and loss.

26 LIQUIDITY RISK

Liquidity Risk is the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company's corporate finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are reviewed by the Board of Directors. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.

Financial Liabilities as reported in the Balance Sheet are segregated into current and non-current. Non-current financial liabilities have a maturity period of more than one year, whereas the current financial liabilities have maturities within one year.

27 CAPITAL MANAGEMENT

For the purposes of Company's Capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company's Capital management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants. The company monitors capital using gearing ratio, which is total debt divided by total capital plus debt.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1 : Quoted prices in active markets for identical assets or liabilities

Level 2 : Other techniques for which all inputs which have a significant effect on the recorded fair value are observable.

Level 3 : Techniques using inputs having significant effect on the recorded fair value that are not based on observable market data.

28 FLUCTUATION IN LONG TERM FOREIGN CURRENCY MONETARY ITEMS

The Company has exercised the option available to it under Rule 46A of the Companies (Accounting Standards) (Second Amendment) Rules, 2011 in respect of accounting for fluctuations in foreign exchange relating to "Long Term Foreign Currency Monetary Items". Accordingly, it has adjusted a loss/(gain) of RS,(14.58) lacs (Previous year Gain RS,17.07) lacs during the period to the cost of its fixed assets on account of such difference arising during the current period and has provided for depreciation thereon over the balance useful life of the respective assets. Consequently, the charge to the Statement of Profit and Loss is effected to that extent.

29 TAXATION

A firm of Independent Accountants have certified that the Company's international and specified domestic transactions covered by transfer pricing regulations during the financial year ended 31st March, 2017 were at arm's length. The Management believes that during the current financial year, similar transactions would have no impact on these financial statements and particularly the amount of tax expense and the provision for taxation.

* For the purposes of this clause, the term 'Specified Bank Notes' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.0.3407(E), dated the 8th November, 2016.

30 Balances under Trade receivables, Trade Payables, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

31 The figures for the previous period are re-classified/ re-arranged / re -grouped, wherever necessary so as to be in conformity with the figures of the current period's classification/disclosure.